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Government can curb inflation by  

Economics
WAEC 2025

Government can curb inflation by

 

  • A. increasing her own expenditure
  • B. selling securities in the open market
  • C. buying treasury bills in the open market
  • D. encouraging banks to lend for may purpose
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Correct Answer: Option B
Explanation

Inflation can be curbed by the government by selling securities in the open market. This is because when the government sells
securities, it reduces the amount of money in circulation, which in turn reduces the demand for goods and services, thereby
reducing inflation. This is a monetary policy tool known as open market operations.


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